In this episode of Entrepreneur Expat, we’re talking about how to get temporary residency when moving to Mexico. This is a hot topic in the expat community, so we’re sharing what we know based on our experience getting temporary residency. Just note, this is not legal or accounting advice. If you need lawyers and accountants which we recommend you use them, then reach out to us and we can make recommendations.
Resources Mentioned In This Video:
- Download our free guide on Moving to Mexico here.
- Follow Justin’s website for more information about using technology to run an online business here.
- Follow Amanda’s website to learn more about online business, marketing and sales here.
Moving to Mexico: Why would you want Mexican residency?
If you’re planning on moving to Mexico, you might as well plan on getting Mexican residency. There are several advantages to doing so including:
- Getting access to bank accounts
- Getting access to insurance
- Having a Plan B so you have somewhere else to go if you need it
- Not having to worry about Mexico getting more strict about tourist visas which is becoming more common
- Making it easier to stay out of the U.S. long enough to get the foreign earned income exclusion which significantly reduces your federal taxes
As an added bonus, temporary residents do not pay federal taxes in Mexico. You do pay sales tax every time you buy stuff, of course, but most temporary residents making their money outside of Mexico are not in the Mexican tax system.
What You need to Know About Getting Mexican Residency
Both Amanda and Justin are temporary residents of Mexico who went through the process about a year apart. Justin went through the process in 2022 and Amanda went through it at the end of 2023. You can watch the video for their full story and experiences. For now, here’s what you need to know.
- Prepare to show proof of income of at least $4500 per month to be safe. This would take you above the minimum that can range anywhere from $3100 to $4300 per month depending on the consulate. It’s important to note that this is not an average income per month, but the money hitting your bank account every month. Also note, the requirements have been going up every year as Mexico looks to admit what they would consider to be the “Executive Class.” They want to make sure you won’t be a burden on the system (which is their right to do!)
- Not all consulates accept business bank statements but some do.
- If you want permanent residence, it’s more money and usually you also have to be of retirement age.
- Be prepared to show up with all the required paperwork. The consulate will tell you what you need to bring.
- The first part of the process is done at the consulate in your home country. You then have to 60 days to re-enter Mexico. When you re-enter, do NOT use the passport machines because you will lose your residency. Instead, go into the line for Mexican residents, show them the visa in your passport and tell them you will be exchanging it for a physical card. From there, you have 30 days to go to the immigration office in Mexico to file additional paperwork and get your physical card.
- Prepare to spend an entire day at the immigration office in Mexico as they have an influx of immigration going on right now.
Moving to Mexico: Residency is always a good idea
It’s never a bad idea to have residencies because it gives you more options in different parts of the world. In other words, it definitely doesn’t limit you. Although no visa process is without it potential hiccups, the process for Mexico is still pretty straight forward and attainable in comparison to other countries, so take advantage while you can.